According to a web site Q&A with Joe Matz, corporate VP, worldwide licensing and pricing, renewals of Microsoft's Enterprise Agreements, which include a mandatory subscription to the Software Assurance program, "exceed the high end of our historic range of 66%-75%."

Based on a small sample of 63 customers, Forrester found a 26% dropout rate because of the long stretches between upgrades and the apparent waste of money and 31% were unsure they would renew (CSN No 699).

Contradicting Forrester, Matz says, "We don't see customers opting out - quite the contrary in fact, as our earnings announcement shows."

In its last quarter, 40% of Microsoft revenues came from multi-year license sales and deferred income, where volume agreements hide, was up 28% year-over-year although the company expects not to be able to repeat that performance and in fact expects growth to slow by two-thirds.